An Appropriately Structured and Effective Board Protects Owners from Managerial

question 51

True/False

An appropriately structured and effective board protects owners from managerial opportunism such as that found at financial services firms including AIG and Merrill Lynch where shareholders and employees encountered significant losses.

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Definitions:

Journal Entry

A recording of financial transactions in the accounting records, detailing the accounts affected, amounts, and date.

Chart of Accounts

An organized list of all ledger account titles and numbers used by a company, detailing all transactions' recording places.

General Ledger

A comprehensive record of all financial transactions of a company, systematically organized by accounts.

Net Income

The remaining earnings of a company following the deduction of all expenses and taxes from its total income.